Ghazeer development to bring Khazzan production to an estimated 1.5 bcf/d gas

MUSCAT, Sultanate of Oman, 10-Apr-2018 — /EuropaWire/ — BP today announced that, together with its partner the Oman Oil Company Exploration & Production, it has approved the development of Ghazeer, the second phase of the giant Khazzan gas field in Oman.

The final investment decision (FID) for Ghazeer follows the successful start-up of Khazzan’s first phase of development in September 2017. This project, which started production ahead of schedule and under budget, is now producing at design capacity of around 1 billion cubic feet of gas a day (bcf/d) and around 35,000 barrels a day of condensate.

Yousuf Al Ojaili, President of BP Oman said: “Following the successful startup of Khazzan, we are pleased to announce the sanction of Ghazeer, BP’s first project FID of 2018. Through the transfer of industry-leading skills and technology from BP’s global portfolio, we look forward to futher developing this gas field that is expected to support Oman’s energy needs for many decades to come.”

The Ghazeer project is expected to come onstream in 2021 and deliver an additional 0.5 bcf/d and over 15,000 bpd condensate production. Drilling on the first three development wells has begun, following appraisal drilling on Ghazeer last year. Initial construction work has already started at Khazzan to accommodate a third gas train and associated infrastructure.

The Khazzan and Ghazeer, developments are expected to deliver total production of 10.5 tcf of gas and around 350 million barrels of condensate through the end of concession.

Notes to editors

BP is the operator of Block 61 and holds a 60% interest. The Oman Oil Company Exploration & Production holds a 40% interest.

In December 2013, the Government of the Sultanate of Oman and BP signed an amended exploration production sharing agreement (EPSA) for the development of the Khazzan Project for Block 61. The agreement was ratified in February 2014 by a Royal Decree issued by His Majesty Sultan Qaboos bin Said. The concession runs to 2043.

In 2016, BP signed an agreement with the Government of the Sultanate of Oman to amend the Oman Block 61 exploration and production sharing agreement (EPSA). This has added a further 1,150km2 to the south and west of the original 2,800km2 Block 61 development, allowing a second phase of development, known as Ghazeer.

Production began at Khazzan in September 2017 and it has recently produced at its design capacity of 1 bcf/d and ca. 35,000 bpd condensate.

BP is one of the largest oil and gas businesses in the world and has had an upstream presence in Oman since 2007.

With its national oil company partners, BP is currently helping to develop more than 5.5 million barrels per day of oil and gas production throughout the Middle East.

Cautionary statement
In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), BP is providing the following cautionary statement. This press release contains certain forward-looking statements concerning BP’s Khazzan and Ghazeer gas developments in Oman, including plans and expectations for the projects together to deliver total production of 10.5 tcf of gas and around 350 million barrels of condensate through 2043 and plans and expectations for the Ghazeer project individually, including startup timing, production levels and impact on Oman’s energy needs. Actual results may differ from those expressed in such statements, depending on a variety of factors including changes in public expectations and other changes to business conditions; the timing, quantum and nature of divestments; the receipt of relevant third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; regulatory or legal actions; economic and financial conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors, trading partners and others; natural disasters and adverse weather conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors discussed under “Risk factors” in our Annual Report and Form 20-F 2017.

This document contains references to non-proved resources and production outlooks based on non-proved resources that the SEC’s rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or by logging on to their website at www.sec.gov.